Question 1

How can a firm protect its proprietary information in a joint venture?

Accepted Answer

A)  Share only the technology that is central to the core competence of the firm. 
B)  Hold majority ownership in the venture so that the firm has greater control over the technology. 
C)  Share only the technology of the firm, not the patents and copyrighted information. 
D)  Hold minority ownership in the venture so that the firm does not have to give over control of the technology. 
A)  Share only the technology that is central to the core competence of the firm. 
B)  Hold majority ownership in the venture so that the firm has greater control over the technology. 
C)  Share only the technology of the firm, not the patents and copyrighted information. 
D)  Hold minority ownership in the venture so that the firm does not have to give over control of the technology.

Question 2

________ agreements enable firms to hold each other "hostage," thereby reducing the risk they will behave in an opportunistic manner toward each other.

Accepted Answer

A)  Turnkey 
B)  Franchising 
C)  Cross-license 
D)  Integrated license 
A)  Turnkey 
B)  Franchising 
C)  Cross-license 
D)  Integrated license

Question 3

A good ally will expropriate the firm's technological know-how while giving away little in return.

Accepted Answer

A) True 
 B)False

Question 4

Apple exports its products to many countries. An advantage of exporting products to another country is that it

Accepted Answer

A)  minimizes exchange rate risks. 
B)  provides the ability to achieve experience curve and location economies. 
C)  faces less trade barriers. 
D)  gives firms access to local knowledge. 
A)  minimizes exchange rate risks. 
B)  provides the ability to achieve experience curve and location economies. 
C)  faces less trade barriers. 
D)  gives firms access to local knowledge.

Question 5

An advantage of ________ with a local partner is the knowledge of the local environment that the local partner contributes to the venture.

Accepted Answer

A)  turnkey contracts 
B)  licensing contracts 
C)  joint ventures 
D)  wholly owned subsidiary contracts 
A)  turnkey contracts 
B)  licensing contracts 
C)  joint ventures 
D)  wholly owned subsidiary contracts

Question 6

The most typical joint venture is a ________ venture.

Accepted Answer

A)  50-50 
B)  60-40 
C)  75-25 
D)  10-90 
A)  50-50 
B)  60-40 
C)  75-25 
D)  10-90

Question 7

Which of the following is a first-mover advantage?

Accepted Answer

A)  lower research and development costs and marketing costs than other firms 
B)  ability to preempt rivals and capture demand by establishing a strong brand name 
C)  ability to capitalize on the work done by other firms 
D)  creation of innovative products at lower costs than other firms 
A)  lower research and development costs and marketing costs than other firms 
B)  ability to preempt rivals and capture demand by establishing a strong brand name 
C)  ability to capitalize on the work done by other firms 
D)  creation of innovative products at lower costs than other firms

Question 8

Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

Accepted Answer

In a turnkey project, the contractor agr

Question 9

Costs that an early entrant has to bear that a later entrant can avoid are known as

Accepted Answer

A)  first-mover costs. 
B)  late-mover disadvantages. 
C)  pioneering costs. 
D)  licensing fees. 
A)  first-mover costs. 
B)  late-mover disadvantages. 
C)  pioneering costs. 
D)  licensing fees.

Question 10

Discuss the three advantages of acquiring an enterprise in a target market.

Accepted Answer

Acquisitions have three major points in

Question 11

The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as ________ costs.

Accepted Answer

A)  switching 
B)  market development 
C)  pioneering 
D)  promotional development 
A)  switching 
B)  market development 
C)  pioneering 
D)  promotional development

Question 12

An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is ________ agreement.

Accepted Answer

A)  a turnkey 
B)  a licensing 
C)  a greenfield 
D)  an acquisition 
A)  a turnkey 
B)  a licensing 
C)  a greenfield 
D)  an acquisition

Question 13

Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner.

Accepted Answer

A) True 
 B)False

Question 14

Explain the relationship between first-mover disadvantages and pioneering costs.

Accepted Answer

When a firm enters a market before other

Question 15

There are several disadvantages of franchising as an entry mode. Which of the following is one of them?

Accepted Answer

A)  There is little incentive for the franchisee to build a profitable operation as quickly as possible. 
B)  The firm incurs many of the costs and risks of opening a foreign market on its own. 
C)  Franchising may inhibit the firm's ability to use the profits obtained to open additional businesses in the same country. 
D)  Franchising may inhibit the firm's ability to take profits out of one country to support competitive attacks in another. 
A)  There is little incentive for the franchisee to build a profitable operation as quickly as possible. 
B)  The firm incurs many of the costs and risks of opening a foreign market on its own. 
C)  Franchising may inhibit the firm's ability to use the profits obtained to open additional businesses in the same country. 
D)  Franchising may inhibit the firm's ability to take profits out of one country to support competitive attacks in another.

Question 16

The greater the pressures for cost reductions, the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries.

Accepted Answer

A) True 
 B)False

Question 17

What are first-mover advantages? Discuss these advantages.

Accepted Answer

First-mover advantages are the advantage

Question 18

Large-scale strategic commitments may

Accepted Answer

A)  have many benefits and few to no risks. 
B)  increase strategic flexibility. 
C)  have many risks and few to no benefits. 
D)  limit strategic flexibility. 
A)  have many benefits and few to no risks. 
B)  increase strategic flexibility. 
C)  have many risks and few to no benefits. 
D)  limit strategic flexibility.

Question 19

________ allow a firm to rapidly build its presence in the target foreign market.

Accepted Answer

A)  Joint ventures 
B)  Acquisitions 
C)  Subsidiaries 
D)  Turnkey contracts 
A)  Joint ventures 
B)  Acquisitions 
C)  Subsidiaries 
D)  Turnkey contracts

Question 20

Tangible property includes patents, designs, copyrights, and trademarks.

Accepted Answer

A) True 
 B)False

How can a firm protect its proprietary information in a joint venture?

________ agreements enable firms to hold each other "hostage," thereby reducing the risk they will behave in an opportunistic manner toward each other.

A good ally will expropriate the firm's technological know-how while giving away little in return.

Apple exports its products to many countries. An advantage of exporting products to another country is that it

An advantage of ________ with a local partner is the knowledge of the local environment that the local partner contributes to the venture.

The most typical joint venture is a ________ venture.

Which of the following is a first-mover advantage?

Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

Costs that an early entrant has to bear that a later entrant can avoid are known as

Discuss the three advantages of acquiring an enterprise in a target market.

The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as ________ costs.

An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is ________ agreement.

Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner.

Explain the relationship between first-mover disadvantages and pioneering costs.

There are several disadvantages of franchising as an entry mode. Which of the following is one of them?

The greater the pressures for cost reductions, the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries.

What are first-mover advantages? Discuss these advantages.

Large-scale strategic commitments may

________ allow a firm to rapidly build its presence in the target foreign market.

Tangible property includes patents, designs, copyrights, and trademarks.

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 15: Entry Strategy and Strategic Alliances

How can a firm protect its proprietary information in a joint venture?

________ agreements enable firms to hold each other "hostage," thereby reducing the risk they will behave in an opportunistic manner toward each other.

A good ally will expropriate the firm's technological know-how while giving away little in return.

Apple exports its products to many countries. An advantage of exporting products to another country is that it

An advantage of ________ with a local partner is the knowledge of the local environment that the local partner contributes to the venture.

The most typical joint venture is a ________ venture.

Which of the following is a first-mover advantage?

Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

Costs that an early entrant has to bear that a later entrant can avoid are known as

Discuss the three advantages of acquiring an enterprise in a target market.

The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as ________ costs.

An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is ________ agreement.

Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner.

Explain the relationship between first-mover disadvantages and pioneering costs.

There are several disadvantages of franchising as an entry mode. Which of the following is one of them?

The greater the pressures for cost reductions, the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries.

What are first-mover advantages? Discuss these advantages.

Large-scale strategic commitments may

________ allow a firm to rapidly build its presence in the target foreign market.

Tangible property includes patents, designs, copyrights, and trademarks.

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters